Which of the following is correct? Units sold=opening finished goods units + Units produced Closing finished goods units Units Sold = Units produced + Closing finished goods units - Opening finished goods units Units sold = Sales + Average units of finished goods inventory Units sold = Sales - Average units of finished goods inventory Question # 2 PVC Company has ordering quantity 10,000 units. They have storage capacity 20,000 units, The average inventory would be: 20,000 5,000 10,000 25,000 Question # 3 is the time worked over and above the employee's basic working week. Flex time Overtime Shift allowance Commission Question # 4 Cost of Goods Manufactured can be calculated as follow Total factory Cost Add Opening Work in process inventory Less Closing Work in process inventory Total factory Cost Less Opening Work in process inventory Add Closing Work in process inventory Total factory Cost Less Opening Work in process inventory Less Closing Work in process inventory Total factory Cost Add Opening Work in process inventory Add Closing Work in process inventory Question # 5 Which of the following statement is correct regarding reasons of variance? Difference between capacity level over which overhead absorption rate is calculated & capacity level attained.
Difference between FOH cost budgeted or estimated over which overhead absorption rate and FOH actually incurred. Difference between the actual level which company achieved and budget level which company determined. All of the given Question # 6 The component of Factory overhead are as follow Direct material + Indirect material + Direct expenses Indirect material + Indirect labor + Others indirect cost Direct material + Indirect expenses + Indirect labor Direct labor + Indirect labor + Indirect expenses Question # 7 In which of the following would there be a difference between financial and managerial accounting? Users of the information Purpose of the information Flexibility of practices Question # 8 Over applied FOH will always result when a predetermined FOH rate is applied and: Production is greater than defined capacity Actual overhead costs are less than budgeted overhead Budgeted capacity is less than normal capacity Actual overhead incurred is less than applied Overhead Question # 9 All of the following are cases of labor turnover EXCEPT: Workers appointed against the vacancy caused due to discharge or quitting of the organization Workers employed under the expansion schemes of the company The total change in the composition of labor force Workers retrenched Question # 10 Under LIFO method the value of issues is close to: Second hand price Current market price Historical cost
All of given options Question # 11 Differential cost has the behavior of? Fixed cost Step cost Variable/semi variable cost Question # 12 In furniture manufacturing use of nail, pins, glue, and polish which use to increase its esteem value that cost is treated as: Direct material cost Indirect material cost FOH cost Prime cost Question # 13 A store ledger card is similar to the. Stock ledger Bin card Material card Purchase requisition card Question # 14 FOH absorption rate is calculated by the way of Estimated FOH Cost/Direct labor hours Estimated FOH Cost/No of units produced Estimated FOH Cost/Prime Cost Question # 15 Which of the following is / are element / s of production payroll? Direct labor force wages Administrative wages Selling wages Labor costs constitute an important part of production cost. Labor cost is and element of total payroll expense of an entity. Payroll expense consists of Labor cost Administrative staff expenses Selling and distribution staff expenses Question # 16
Which of the following costs is part of the prime cost for manufacturing company? Cost of transporting raw materials from the suppliers premises Wages of factory workers engaged in machine maintenance Depreciation of truck used for deliveries to customers Cost of indirect production materials Question # 17 All Indirect cost is charged/record in the head of Prime cost FOH cost Direct labor cost Question # 18 Direct material opening inventory add net purchases is called Material consumed Material available for use Total material purchased Material ending inventory Question # 19 The journal entry of purchase of stock under periodic inventory system would be? Inventory to Cash Cash to Purchases Purchases to Inventory Question # 20 Which of the following statement measures the financial position of the entity on particular time? Income Statement Balance Sheet Cash Flow Statement Statement of Retained Earning Question # 21 The Process of cost apportionment is carried out so that: Cost may be controlled Cost unit gather overheads as they pass through cost centers Whole items of cost can be charged to cost centers Common costs are shared among cost centers Question # 22 Net sales = Sales less:
Sales returns Sales discounts Sales returns & allowances Sales returns & allowances and sales discounts 21081,articleId- 21036.html Question # 23 Where the applied FOH cost is greater than the actual FOH cost it is: Unfavorable variance Favorable variance Normal variance Budgeted variance Question # 24 Merrick Differential system uses --------- rates. Two Three Four Five Question # 25 FOH applied rate of Rs. 5.60 per machine hour. During the year the FOH to Rs.275,000 and 48,000 machine hours were used. Which one of following statement is correct? Overhead was under-applied by Rs.6,200 Overhead was over-applied by Rs.6,200 Overhead was under-applied by Rs.7,200 Overhead was over-applied by Rs.7,200 Explanation: FOH = 275000 48000*5.60 = 268800 275000-268800 = 6200 as the predetermined FOH is greater than actual so it will be Over-applied Question # 26 Under/Over applied FOH cost can be adjusted in which of the following: Entire Production Cost of Good sold Net Profit All of given options Question # 27 A cost centre is A unit of product or service in relation to which costs are ascertained
An amount of expenditure attributable to an activity A production or service location, function, activity or item of equipment for which costs are accumulated A centre for which an individual budget is drawn up Question # 28 All of the following are essential requirements of a good wage system EXCEPT: Reduced overhead costs Reduced per unit variable cost increased production Increased operating costs Question # 29 Increase in material Inventory means: The ending inventory is greater than opening inventory The ending inventory is less than opening inventory Both ending and opening inventories are equal Can not be determined Question # 30 Which of the following is sales force payroll incentive? Commission Shift allowance Over time payment Bonus Question # 31 A worker is paid Rs. 0.50 per unit and he produces 18 units in 7 hours. Keeping in view the piece rate system, the total wages of the worker would be: 18 x 7 x 0.50 = Rs. 63 18 x 0.50 = Rs. 9 (piece rate= unit * rate) 18 x 7 = Rs. 126 7 x 0.5 = Rs. 3.5 Question # 32 If a predetermined FOH rate is not applied and the volume of production is reduced from the planned capacity level, the cost per unit expected to: Remain unchanged for fixed cost and increase for variable cost Increase for fixed cost and remain unchanged for variable cost Increase for fixed cost and decrease for variable cost Decrease for both fixed and variable costs Question # 33 Which of the following cost is used in the calculation of cost per unit?
Total production cost Cost of goods available for sales Cost of goods manufactured Cost of goods Sold Question # 34 Net Income before Interest and tax is also called: Operating Income/Profit Gross Profit Marginal Income Other Income Question # 35 Which of the following is an example of Statutory deductions: Deduction as Income Tax Deduction as social security Subscriptions to a trade union None of the given Question # 36 Direct material opening inventory add net purchases is called Material consumed Material available for use Total material purchsed Material ending inventory Question # 37 Inventory turnover ratio can be calculated as follow? Cost of goods sold/average inventory Gross profit/average inventory Cost of goods sold/sale Cost of goods sold/gross profit Question # 38 Cost accounting concepts include all of the following EXCEPT: Planning Controlling Sharing Costing Question # 39 Overtime that is necessary in order to fulfill customer orders is called: Avoidable overtime Unavoidable overtime
Premium Overtime Flex time Question # 40 If opening inventory of material is Rs.20,000 and closing inventory is Rs. 40,000.the Average inventory amount will be: Rs. 40,000 Rs. 30,000 Rs. 20,000 Rs. 10,000 Question # 41 In which of the following center FOH cost NOT incurred Production Center Service Center General Cost Center Head Office Question # 42 If labor is satisfied with high wages it may ultimately lead to: Increased production and productivity Increased efficiency Reduced labor and overhead costs Question # 43 Byer produced 20,000 units and their total factory cost was Rs. 450,000,other cost like property tax on factory bulding was Rs. 10,000 included in that cost till year ended the cost of per unit would be: Rs.22.5 Rs.23.5 Rs.24.5 Rs.26.5 Question # 44 Which of the following best describes the manufacturing costs? Direct materials, direct labor and factory overhead Direct materials and direct labor Direct materials, direct labor, factory overhead, and administrative overhead Direct labor and factory overhead Question # 45 The Term Minimum Level Represents.
This represents the quantity below which the stock of any item should not be allowed to fall This represents the quantity below which the stock of any item should be allowed to fall This is the estimated time period in number of days or in weeks or in months. This is the Lead time period in number of days or in weeks or in months. Question # 46 Which of the following is to be called product cost Material cost Labor cost FOH cost Question # 47 The components of the prime cost are: Direct Material + Direct Labor + Other Direct Cost Direct Labor + Other Direct Cost + FOH Direct Labor + FOH Question # 48 Store in charge after receiving the material as per the goods received note, places the material at its location and makes an entry in. Bin Card page 64 Store Ledger Card Stock Ledger Question # 49 Working hours of labor can be calculated with the help of all except: Smart card Time sheet Clock card Store card page 70 Question # 50 A cost unit is The cost per hour of operating a machine The cost per unit of electricity consumed A unit of product or services in relation to which costs are ascertained A measure of work output in a standard hour Question # 51
A Blanket Rate is: A single rate which used throughout the organization departments A double rates which used throughout the organization departments A single rates which used in different departments of the organization Question # 52 The FIFO inventory costing method (when using a perpetual inventory system) assumes that the cost of the earliest units purchased is allocated in which of the following ways? First to be allocated to the ending inventory Last to be allocated to the cost of goods sold Last to be allocated to the ending inventory First to be allocated to the cost of good sold Question # 53 A company has calculated that volume variance for a given month was unfavorable. This could have been caused by which of the following factors? The number of rejected units was higher than normal Machine breakdowns were higher than normal Delays were experienced in the issuing of material to production Question # 54 A method by which the good used are priced out at average cost is known as: BCVO AVCO c.fifo LIFO Question # 55 Under Periodic Inventory system Purchase of inventory is treared as: Assets Expense Income Liability Question # 56 In order to ensure efficient functioning of the stores department and steady flow of materials to the production departments, the restocking of stores is duty of: Managers Storekeeper page 50
Production In charge Sales supervisor Question # 57 If, COGS = Rs. 50,000 GP Margin = 25% of sales What will be the value of Sales? Rs. 200,000 Rs. 66,667 Rs. 62,500 Sales = Gross profit * 100%/ 25% Gross profit = COGS * 25% /75% = 16667 Sales = 16667*100%/ 25%= 66668 Question # 58 If, COGS = Rs. 70,000 GP Margin = 30% of sales What will be the value of Sales? Rs. 200,000 Rs. 66,667 Rs. 100,000 Rs. 62,500 Gross profit = 30000 Sales =30000 *100%/ 30%= Rs. 100,000 Page 33 and 34 Question # 59 If, Gross profit = Rs. 40,000 GP Margin = 25% of sales What will be the value of cost of goods sold? Rs. 160,000 Rs. 120,000 Rs. 40,000 Can not be determined COGS = Gross profit * 75%/ 25%= Rs. 120,000 Question # 60 The abbreviation LIFO is: Large integrated financial organization Least interesting financial option The last in first out method Question # 61 Which of the following is/are not associated with ordering costs? Interest
Insurance Opportunity costs Question # 62 The supervisor salary is treated as: Direct labor cost Indirect labor cost Conversion cost Question # 63 Cost of finished goods inventory is calculated by: Multiplying units of finished goods inventory with the cost per unit Dividing units of finished goods inventory with the cost per unit Dividing per unit cost with finished goods inventory Deducting total cost from finished goods inventory Question # 64 The main purpose of cost accounting is to Maximize profits Help in inventory valuation Provide information to management for decision making Aid in the fixation of selling price Question # 65 The flux method of labor turnover denotes: Workers appointed against the vacancy caused due to discharge or quitting of the organization Workers appointed in replacement of existing employees Workers employed under the expansion schemes of the company The total change in the composition of labor force Question # 66 While calculating the EOQ, number of orders is calculated by: Multiplying the required units with cost per order Dividing required unit by ordered quantity Multiplying the required units with ordered quantity Multiplying the ordered quantity with cost per order Question # 67 Which of the following statement is TRUE about FOH applied rates? They are used to control overhead costs They are based on actual data for each period They are predetermined in advance for each period
None of the given Question # 68 EOQ is a point where: Ordering cost is equal to carrying cost Ordering cost is higher than carrying cost Ordering cost is lesser than the carrying cost Total cost is maximum Question # 69 Opportunity cost is the best example of: Sunk Cost Standard Cost Relevant Cost Irrelevant Cost Question # 70 From employer point of view, the total cost of wages and salaries is a combination of which of the following? Gross wages and salaries+employer's provident fund contributions Gross wages and salaries+employee's provident fund contributions Gross wages and salaries + Income Tax deductions Gross wages and salaries + pension scheme payments Question # 71 Generally, the danger level of stock is fixed the minimum level. Below Above Equal Danger level has no relation to minimum level Question # 72 A standard rate is paid to the employee when he completed his job: In time less than the standard In standard time In time more than standard Both in standard time and more than the standard time Question # 73 If, Sales = Rs. 600,000 Markup = 20% of cost What would be the value of Gross profit? Rs. 200,000 Rs. 100,000 Rs. 580,000
Rs. 740,000 Question # 74 Period costs are Expensed when the product is sold Included in the cost of goods sold Related to specific Period Not expensed Question # 75 The Inventory Turn over ration is 5 times and numbers of days in a year is 365.Inventory holding period in days would be 100 days 73 days 50 days 10 days Question # 76 If labor is satisfied with high wages it may ultimately lead to: Increased production and productivity Increased efficiency Reduced labor and overhead costs Question # 77 Gross pay includes which of the following items? Basic pay + bonus pay Overtime payment + shift allowances Rent and conveyance allowances Question # 78 The Economic order quantity can be calculated by: Formula Method Table Method Graph Method All of the given Question # 79 Merrick Differential Piece Rate System: worker is not penalized even if his performance does not exceed 80 per cent of the High Task. worker is not penalized even if his performance does not exceed 70 per cent of the High Task.
worker is not penalized even if his performance does not exceed 50 per cent of the High Task. worker is not penalized even if his performance does not exceed 30 per cent of the High Task. Question # 80 Production volume of 1,200 units cost incurred Rs. 10,000 and production volume of 1,400 units cost incurred Rs.20, 000. The variable cost per unit would be? Rs. 50.00 per unit Rs. 8.33 per unit Rs. 14.20 per unit Rs. 100 per unit Question # 81 Cost of goods sold can be calculated as follow Cost of goods manufactured Add Opening finished goods inventory Less Closing finished goods inventory Cost of goods manufactured Less Opening finished goods inventory Less Closing finished goods inventory Cost of goods manufactured Less Opening finished goods inventory Add Closing finished goods inventory Cost of goods manufactured Add Opening finished goods inventory Add Closing finished goods inventory Question # 82 Sales are Rs. 450,000. Beginning finished goods were Rs. 23,000. Ending finished goods are Rs. 30,000. The cost of goods sold is Rs. 300,000. What is the cost of goods manufactured? Rs. 323,000 Rs. 330,000 Rs. 293,000 Question # 83 By useing table method where-------------- is equal,that point is called Economic order quanity. Ordering cost Carrying cost Ordering and carrying cost Per unit order cost
Question # 84 Which of the following is called Non Statutory deductions: Subscriptions to a trade union Contributions by the employee to a pension scheme Contributions by the employer to a pension scheme All of the given Question # 85 Which of the following is a point of differentiation between blanket rates and department rates? Blanket rate is a single overhead rate established for the entire factory Department rates are separate overhead rates for all departments of factory through which the products pass Department rate is a single overhead rate established for the entire factory Blanket rates are separate overhead rates for all departments of factory through which the product passes Question # 86 Which of the following is true when piece rate system is used for wage determination? worker is paid on the basis of time taken by him to perform the work worker is paid on the basis of production page84 Piece rate system is more beneficial than a guaranteed minimum wage system Question # 87 Where the applied FOH cost is less than the actual FOH cost it is: Unfavorable variance Favorable variance Normal variance Budgeted variance Question # 88 Factory Over head cost includes Factory Rent Property Tax Salaries of Factory Clerk All of the given Question # 89 are future costs that effect the current management decision. Sunk Cost
Standard Cost Relevant Cost Irrelevant Cost Question # 90 Which of the following is considered as basic systems of remunerating labor? Time rate system Piece rate system Halsey Premium plan Both time rate and piece rate system Question # 91 While deducting Income Tax from the gross pay of the employee, the employer acts as a (an) for Income Tax Department. Agent of his own Company Paid tax collection agent Unpaid tax collection agent Question # 92 When FOH is under applied and charged to Net profit, the treatment would be: Under applied Add net profit Under applied Less net profit Under applied Less operating expense Question # 93 According to IASB framework, Financial statements exhibit to its users the: Financial position Financial performance Cash inflow and outflow analysis Question # 94 A spending variance for factory overhead is the difference between actual factory overhead cost and factory overhead cost that should have been incurred for actual hours worked and results from: Price difference of FOH costs Quantity differences of FOH costs Price and quantity differences for FOH costs Difference caused by production volume variations Question # 95
EOQ is the order quantity that over our planning horizon Minimizes total ordering costs Minimizes total carrying costs Minimizes total inventory costs Minimize the required safety stock Question # 96 1 In a repeated distribution method: Each service department in turn does not re-allocate its costs to all departments Each service department in turn and re-allocates its costs to all departments Each service department in turn and allocates its costs to all departments Only one service department in turn and re-allocates its costs to all departments Question # 97 Loss by fire is an example of: Normal Loss Abnormal Loss Incremental Loss Can not be determined Question # 98 Which of the following is not true Managerial accounting information is prepared for internal users Preparation of Managerial accounting information is not a legal requirement There are specific standards of acceptability for managerial accounting The structure of managerial accounting practice is relatively flexible Question # 99 Manufacturing entities classified the inventory in which of three kinds? Material inventory,wip inventory,finished goods inventory Material inventory,purchased good inventory,wip inventory Material inventory,purchased good inventory,finished goods inventory WIP inventory,finished goods inventory,purchased good inventory Question # 100 Which of the following is correct for maximum level? Reorder level (Minimum consumption x Lead time) + EOQ (Maximum consumption x Lead time) (Minimum consumption x Lead time) + EOQ [(Maximum consumption - Minimum consumption) Lead time]+ EOQ